In 2024, investment and production in clean energy contributed $1.9 trillion — which is one-tenth of China’s GDP
China’s clean energy boom is reshaping energy systems around the world, driving the transition towards electric-based technologies which further encourage a shift away from fossil fuel-intensive processes, according to a new report by the London-based energy think tank Ember.
The switch to cheaper electro-technology is bringing a global decline in fossil fuel use, according to the report titled ‘China Energy Transition Review 2025’.
China, which was responsible for over 67% of total solar capacity installed last year globally, has reduced the usage of fossil fuel derived power across buildings, transport and industry over the last decade.
In the power sector, while there is still continued fossil fuel usage, it hasn’t increased. On the other hand, Chinese exports of solar panels, batteries, electric vehicles and heat pumps are rising.
Fossil fuel decline in China
According to Ember, between 2015 and 2023, fossil fuel use in China’s final energy consumption fell by 1.7% across buildings, industry and transport, while electricity use rose by 65%.
In the power generation sector, fossil output dropped 2% in the first half of 2025 compared to the same period last year, as wind and solar generation rose by 16% and 43% respectively. In the 12 months to June 2025, for the first time, wind and solar generated more electricity than hydro, nuclear and bioenergy, having generated half as much as those sources just four years ago, according to the report.
Such changes were made possible by continued investment in renewable energy. In 2024, China invested $625 billion in clean energy, 31% of the global total, with major expansions in storage and grids, according to Ember’s report.
“China is now the main engine of the global clean energy transition,” said Dr Muyi Yang, coordinating lead author of Ember’s China Energy Transition Review 2025. “Policy and investment decisions made in China over the last two decades are fundamentally changing the basis of China’s own energy system, and enabling other countries to also move swiftly from fossil to clean.”
Renewable powerhouse
Between 2021 and 2024, wind and solar capacity in China more than doubled to 1,400 GW, while battery storage tripled to nearly 95 GW, with 2024 additions alone outpacing those of the US and EU combined, found the report.
Investments in developing grids went up to $85 billion in 2024, which allowed more renewable energy to be integrated into the nation’s power supply.
Electricity’s share of final energy consumption reached 32.4% in 2023, and is rising by about one percentage point per year. It is now the largest energy source in both buildings (39%) and industry (31%), having overtaken coal in the latter in 2023.
“This transformation is now deeply embedded in China’s economy,” said Biqing Yang, Asia Analyst at Ember. “Businesses are investing decisively in clean energy, not just because of climate goals but because it is cheaper, more secure and the foundation of future competitiveness.”
In 2024, investment and production in clean energy contributed $1.9 trillion — which is one-tenth of China’s GDP, and the total GDP of Australia, found the report.
The resultant fall in power and technology prices are enabling other countries to move towards clean energy as well, with China’s help. Chinese companies produce 80% of the world’s solar panels and 60% of wind turbines, while also leading exports of batteries, electric vehicles and heat pumps, found the report.
Furthermore, China is also emerging as the world’s clean energy innovation hub, filing around 75% of global clean energy patents.
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